Aegis Capital Sued By Investors For Churning

Shadi Taysir Barakat of New York New York a stockbroker formerly registered with Aegis Capital Corp. is the subject of a customer initiated investment related arbitration claim which had been settled for $150,000.00 in damages founded on accusations that between June 1, 2013 and June 1, 2016: (1) investment recommendations made to the customer by Barakat were not suitable for the customer given the customer’s tolerance for risk or objectives for investing and (2) trades were effected by Barakat in the customer’s investment account on an excessive basis causing the customer to be exposed to unwarranted commissions and losses. Financial Industry Regulatory Authority (FINRA) Arbitration No. 17-00512 (Aug. 3, 2018).

FINRA Public Disclosure reveals that Barakat has been identified in two additional customer initiated investment related disputes containing allegations of Barakat’s misconduct while employed with Aegis Capital Corp. In particular, a customer initiated investment related arbitration claim concerning Barakat’s activities was resolved for $360,000.00 in damages based upon accusations that recommendations made to the customer were not suitable in reference to the private placements, options, stock and over-the-counter equities transactions placed in the customer’s brokerage account; and the customer’s investment portfolio had been churned. FINRA Arbitration No. 13-01501 (Sept. 18, 2015).

Thereafter, a customer filed an investment related arbitration claim regarding Barakat’s activities in which the customer requested $195,723.67 in damages supported by allegations that in reference to the customer’s leveraged exchange traded notes, leveraged traded funds, options, stock and over-the-counter equities holdings: fiduciary duties owed to the customer had been breached; misrepresentations were made to the customer; the customer’s investment account had been administered negligently; unauthorized transactions were executed in the customer’s account; and transactions placed in the customer’s brokerage account failed to be suitable for the customer. FINRA Arbitration No. 15-02850 (Nov. 6, 2015).

Barakat was registered with Aegis Capital Corporation between March 23, 2010 and May 1, 2017. Since May 1, 2017, Barakat has been employed by Spartan Capital Securities LLC.